ORD 1991-34 - Equipment Acquisition C.O. For $34,598 12-10-1991ORDINANCE NO 91- 34
AN ORDINANCE AUTHORIZING ISSUANCE OF A CITY OF
HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION
CERTIFICATE OF OBLIGATION IN THE AMOUNT OF
$34,598; AND CONTAINING OTHER PROVISIONS
RELATED TO THE SUBJECT.
WHEREAS the City Council of the City of Huntsville received competitive bids for a 1992
Diesel Powered 8 Yard Dump Truck, and awarded a contract for the purchase
of such equipment in accordance with Texas Local Government Code Chapter
271 to Barrett Motor Co., in the amount of $34,598; and
WHEREAS the City published notice of intention to issue a Certificate of Obligation
payable from City ad valorem taxes for the purpose of evidencing the
indebtedness of the City for all or part of the purchase of the 1992 diesel
powered 8 yard dump truck at an amount not to exceed $38,000; and
WHEREAS the notice of intention to issue a Certificate of Obligation was published at the
times and in the manner required by Texas Local Government Code Chapter
271 on November 15, 1991, and November 22, 1991;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
HUNTSVILLE, TEXAS; that:
Section 1:
Section 2:
The City Council ratifies the contract with Barrett Motor Co. to purchase the
1992 diesel powered 8 yard dump truck and hereby confirms the purchase of
such equipment.
An interest bearing Certificate of Obligation of the City of Huntsville, Texas,
to be known and designated as "City of Huntsville, Texas, Equipment
Acquisition Certificate of Obligation" is hereby authorized to be issued and
delivered in the principal amount of $34,598 for the purpose of acquiring the
1992 diesel powered 8 yard dump truck for use by the City, and the Mayor
and City Secretary shall have joint control of the certificate for the purpose
of delivering same to the owner in accordance herewith.
Section 3: The Certificate shall be dated December 10, 1991, shall mature and be
payable in five (5) equal installments (subject to the City's option of prior
payment), shall be registered as hereinafter set forth, and shall be in the
following basic form, to-wit:
Dated: December 10, 1991 Amount: $34,598.00
Issued: Register No. 91-
UNITED STATES OF AMERICA
COUNTY OF WALKER
STATE OF TEXAS
CITY OF HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION
CERTIFICATE OF OBLIGATION
The City of Huntsville, a Municipal Corporation of the State of Texas,
acknowledges itself indebted to and FOR VALUE RECEIVED hereby promises to pay to
the registered owner hereof in installments and on the dates as below indicated
the total sum of
THIRTY FOUR THOUSAND FIVE HUNDRED NINETY -EIGHT AND NO /100 DOLLARS
($34,598.00) in lawful money of the United States of America, with interest
thereon from date of issue until paid at the rate of per cent per annum,
payable on , and annually thereafter on the day of
of each and every year as hereinafter provided until such sum is fully
paid.
BOTH PRINCIPAL AND INTEREST on this Certificate of Obligation are hereby
made payable in Huntsville, Walker County, Texas, without exchange or collection
charges to the registered owner hereof, with such payments to be due on the dates
and in the amounts as follows:
DATE PRINCIPAL INTEREST
TOTAL
1992 $ $
1993
1994
1995
1996
$
The City reserves the right to prepay all or any part of this Certificate
at any time prior to the due date or maturity thereof without premium or penalty
of any kind.
It is hereby certified and recited that all acts, conditions and things
required to be done precedent to and in the issuance of this Certificate of
Obligation, to render the same lawful and valid have been properly done, have
happened and have been performed in regular and due time, form and manner as
required by law; that due and proper provision has been made for the levy of a
direct and continuing annual ad valorem tax against all taxable property within
the said City sufficient to pay the interest on this Certificate of Obligation
as due and to provide for the payment of each installment of principal as same
matures; that the City has received full value and consideration for this
Certificate of Obligation and that the total indebtedness of the City of
Huntsville, including this Certificate of Obligation, does not exceed any
constitutional or statutory limitation.
This Certificate shall be registered as to principal and interest in the
owner's name upon books of the City to be kept for that purpose at the office of
the Finance Director of the City, the registrar, such registration to be noted
hereon. After such registration, no transfer of this Certificate shall be valid
unless made on said books at the request of the registered owner hereof, or his
duly authorized agent, and similarly noted hereon.
IN TESTIMONY WHEREOF the City Council has caused the seal of said City to
be impressed hereon and this Certificate of Obligation to be signed by the Mayor
and attested to by the City Secretary, the date of this Certificate of Obligation
being the day of , 1991.
DATE OF INITIAL DELIVERY OF THIS CERTIFICATE:
BILL HODGES, MAYOR
ATTEST:
City Secretary
ASSIGNMENT AND TRANSFER
Full consideration therefor being hereby acknowledged, this Certificate of
Obligation was delivered to Barrett Motor Co., the original holder, on this date,
to-wit: , and by it hereby assigned and transferred to
By
BARRETT MOTOR CO.
CERTIFICATE OF REGISTRATION
IT IS HEREBY CERTIFIED that I have this day registered this Certificate as
to principal in the name of the holder as indicated in the registration blank
below, on the books kept by me for such purpose. The principal of and interest
on this Certificate shall be payable only to the registered holder named in the
below registration blanks.
Name of
Registered Holder
Date of
Registration
Signature of
Finance Director
(Registrar)
Section 4:
Section 5:
Section 6:
Section 7:
While the Certificate of Obligation or installment thereof is outstanding and
unpaid, there shall be annually levied, assessed and collected in due time, form
and manner a tax upon all of the taxable property in said City sufficient to pay
the current interest thereon and to create sinking fund sufficient to pay each
installment of principal as same becomes due, or a sinking fund of 2%,
whichever is greater; and in order to pay the interest on the Certificate of
Obligation for the first year and to create a sinking fund with which to pay the
principal as the same becomes due, or a sinking fund of 2%, whichever is
greater, there is hereby levied a sufficient tax on each ONE HUNDRED
DOLLARS valuation of taxable property in said City for the current year and
the same shall be assessed and collected and applied to the purposes named;
and while the Certificate of Obligation is outstanding and unpaid, a tax each
year at a rate from year to year as will be ample and sufficient to provide
funds to pay the then current interest on the Certificate of Obligation and to
provide the necessary sinking fund, full allowance being made for
delinquencies and costs of collection, shall be and is hereby levied for each
year, respectively, and said tax shall each year be assessed and collected and
applied to the payment of the principal of and interest on the Certificate of
Obligation, to be kept separate and apart from all other funds of the City.
The City Council hereby declares and covenants that it will provide and levy
a tax legally and fully sufficient for the Certificate of Obligation, it having
been determined that the existing and available taxing authority of the City for
such purposes is adequate to permit a legally sufficient tax in consideration of
all other outstanding obligations.
The Mayor and City Secretary are hereby empowered and directed to proceed
with the delivery of the Certificate of Obligation and the closing of said
acquisition at the earliest practicable date and are authorized to complete the
same in accordance with the terms hereof and to do all things necessary or
prerequisite thereto.
The Certificate shall bear interest from the date of initial delivery shown on
the face of each Certificate at a rate per annum not in excess of that
prescribed by Article 717k-2, Texas Revised Civil Statutes, as amended, until
maturity, or upon prepayment. At the time the Certificate of Obligation is
issued the Certificate shall be registered and recorded by such register number
on the books of said City to the registered owner thereof.
That the public importance of this measure and the fact that it is to the best
interest of the City to acquire the equipment herein contemplated at the
earliest possible date, for the immediate preservation of the public peace,
property, health, and safety of the City and its citizens, creates an emergency
and an imperative public necessity and this ordinance shall take effect and be
in force from and after its passage and approval, and it is so ordained.
Section 8:
Notwithstanding any other provision in the within ordinance to the contrary,
as to the authorized issuing date for the Certificate of Obligation, the
certificate shall be dated and bear interest from date of delivery and
execution by the Mayor and City Secretary.
PASSED AND APPROVED this 10th day of December, 1991.
CITY OF HUNTSVILLE, TEXAS
,//y"
Bill Hodges, Mayor
ATTEST:
City Secretary
APPROVED AS TO FORM:
\J
Scott Bounds, City Attorney